Overtime Calculator

How Overtime Pay Works

Under the Fair Labor Standards Act (FLSA), non-exempt employees must receive overtime pay of at least 1.5× their regular hourly rate for all hours worked beyond 40 in a workweek. This is commonly called "time and a half." Some states have additional overtime rules — California, for example, also requires overtime for hours beyond 8 in a single day.

The Calculation

Overtime rate = regular hourly rate × 1.5. If your regular rate is $20/hour, your overtime rate is $30/hour. Total weekly pay = (40 × regular rate) + (overtime hours × overtime rate). Working 50 hours at $20/hour: (40 × $20) + (10 × $30) = $800 + $300 = $1,100 for the week.

Salary-to-Hourly Conversion

If you are salaried and eligible for overtime, first convert your salary to an hourly rate. Divide your annual salary by 52 (weeks), then by 40 (hours). A $52,000 salary = $1,000/week = $25/hour regular rate, making your overtime rate $37.50/hour.

Who Qualifies for Overtime

The FLSA generally requires overtime for non-exempt workers. Exempt employees — typically those in executive, administrative, professional, or certain computer-related roles earning above a salary threshold — do not receive mandatory overtime. As of 2025, the salary threshold for exemption is $58,656/year ($1,128/week). Employees earning below this threshold are generally entitled to overtime regardless of job duties.

Double Time and Other Premium Rates

Some employers and collective bargaining agreements pay double time (2× regular rate) for holidays, Sundays, or excessive hours. California law requires double time for hours beyond 12 in a single day. This calculator supports custom multipliers — enter 2.0 for double time or any other premium rate your situation requires.

Tax Impact of Overtime

Overtime income is taxed as ordinary income — there is no special "overtime tax." However, because overtime pushes your total earnings higher, it may put you into a higher marginal tax bracket for those additional dollars, resulting in a higher effective tax rate on the overtime portion. The calculator shows gross overtime pay; your net amount depends on your overall tax situation.

Authoritative Sources

This calculator uses formulas and reference data drawn from the following sources:

- Bureau of Labor Statistics - HUD — Housing and Urban Development - Federal Reserve — Economic Data

This overtime calculator uses standard finance formulas to compute results. Enter your values and the formula is applied automatically — all math is handled for you. The calculation follows industry-standard methodology.

• https://www.irs.gov
• https://www.investor.gov
• https://www.nerdwallet.com